On January $1,2024,$ Gless Textiles issued $$12\mathrm{.}1$ million of $10\%,10-$year convertible bonds at $103.$

The bonds pay interest on June $30$ and December $31.$

Each $$1,000$ bond is convertible into $50$ shares of Gless's no par common stock.

Bonds that are similar in all respects, except that they are nonconvertible, currently are selling at $98($that is$,98\%$ of face amount$).$

Century Services purchased $11\%$ of the issue as an investment.

Required:

Assume Gless Textiles prepares its financial statements according to International Financial Reporting Standards. Prepare the journal

entry for the issuance of the bonds by Gless using the net method.

Note: If no entry is required for a transaction$/$event$,$ select $"$No journal entry required" in the first account field. Enter your answers

in whole dollars.

Journal entry worksheet

$1$

Record the entry for the issuance of bonds by Gless under IFRS using the net

method.

Note: Enter debits before credits.